Question:

Should I purchase mortgage insurance policy?

Answer:

Yes. A mortgage insurance policy allows your family to live well in a debt-free home should anything ever happen to you. Your mortgage will be repaid upon decease or permanent disability of the policy holder.

How does a mortgage insurance policy work?

It is usually a decreasing term insurance - you are always insured only on the amount you actually owe. While building equity, your mortgage insurance premiums are reduced.

Recommended:

Buy term life insurance. The savings from a decreasing term mortgage insurance are not worth it if insurance event is triggered. A term life insurance policy can provide the best protection for a family. If there is no obstacle to passing the medical exam required for a life insurance product, you'd better go for it.

Mortgage insurance policies in the UK

The mortgage insurance policies in the UK are the MPPI and ASU (in the UK only).

MPPI stands for mortgage payment protection insurance. It pays your mortgage temporarily - while you are sick and cannot work. ASU stands for Accident, Sickness and Unemployment. It provides coverage for a specific amount each month.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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